Equity mutual funds stay strong despite volatility, debt funds see large outflows after rate hikes: AMFI

Debt mutual funds have been hit hard by the ongoing rate hike cycle. The latest data from Association of Mutual Funds in India revealed that the debt mutual funds witnessed a net outflow of Rs 32,722.25 crore in May, compared with an inflow of Rs 54,756.60 crore in April. On the other hand, equity mutual funds continue to witness big inflows despite a volatile market.

“The debt mutual fund AUM and inflows have been hit by the series of rate hikes and expectation of more hikes in the future. This impact was anticipated. On the other hand, equity mutual funds and hybrid funds have gained despite a volatile market, which is a good sign for the mutual fund industry,” said NS Venkatesh, CEO, AMFI.

Equity mutual fund categories saw a net inflow of Rs 18,529.43 crore in May with Flexi Cap Funds gaining the most of it. Large cap funds, which are recommended to tide over volatile times, also gained big in terms of AUM in May. Here’s a look at the data:

Equity Mutual Fund Categories Net Inflow (+ve)/Outflow (-ve) (in crore)
Multi Cap Fund 1,265.01
Large Cap Fund 2,485.37
Large & Mid Cap Fund 2,413.51
Mid Cap Fund 1,831.54
Small Cap Fund 1,769.08
Dividend Yield Fund 80.84
Value Fund/Contra Fund 1,158.01
Focused Fund 1,548.51
Sectoral/Thematic Funds 2,291.80
ELSS 746.84
Flexi Cap Fund 2,938.93

Debt mutual fund categories saw big outflows in May with only liquid, overnight and gilt funds seeing inflows. The highest inflows were cloaked by overnight funds which invest in securities with the minimum duration. Overnight funds saw a net inflow of Rs 15,070.89 crore in May. Here’s how other categories fared in May:

Debt Mutual Fund Categories Net Inflow (+ve)/Outflow (-ve) (in crore)
Overnight Fund 15,070.89
Liquid Fund 1,776.88
Ultra Short Duration Fund -7,104.96
Low Duration Fund -6,716.30
Money Market Fund -14,598.65
Short Duration Fund -8,603.03
Medium Duration Fund -1,222.40
Medium to Long Duration Fund -248.45
Long Duration Fund -2.25
Dynamic Bond Fund -2,414.28
Corporate Bond Fund -2,146.51
Credit Risk Fund -729.60
Banking and PSU Fund -1,121.01
Gilt Fund 175.65
Gilt Fund with 10 year constant duration 447.32
Floater Fund -5,285.55

Big inflows were also seen in the passive fund categories. ETFs other than gold saw inflows worth Rs 6,056 crore and index funds collected Rs 5,723 crore in May. This AUM number is bigger than any other equity or debt category in May.

Similarly, hybrid funds also saw inflows, especially led by dynamic asset allocation or balanced advantage funds, which saw total inflows of Rs 2,247.87 crore. Aggressive Hybrid Fund saw net inflows worth Rs 1,380.47 crore in May.


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